Costco Wholesale Corporation (COST - Free Report) continued with solid comparable-store sales (comps) trend amid a tough retail landscape. Major chains are grappling with sluggish store and mall traffic as consumers switch to online shopping. But Costco seems somewhat resilient to the challenging retail backdrop. We believe that the hike in annual membership fees and increased penetration of Citi Visa co-brand card program will benefit the stock in the near term.
Despite Costco’s sound fundamentals, we note that shares of this Zacks Rank #3 (Hold) stock have dropped 13.1% in the past three months compared with the industry’s decline of roughly 6.7%. So, what suddenly went wrong with the stock? You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Notably, shares of Costco were hit hard, after the news of Whole Foods Market buyout by Amazon.com Inc. (AMZN - Free Report) surfaced.
Costco Continue to Post Solid Comps
Comps for four-week ended Aug 27, 2017 increased 7.3%, following an increase of 6.2% in July, 6% in June, 4.1% in May, 3% in April, 6% in March, 4% in February and 7% in January. The company generated net sales of $9.8 billion in August, up 10% year over year. Notably, net sales increased 8.8%, 7%, 7%, 5%, 9%, 8% and 9% in July, June, May, April, March, February and January, respectively. Comparable e-Commerce sales for the month of August surged 26%.
Comps for July reflect an increase of 7.4%, 8.2% and 6% at the U.S., Canada and Other International locations, respectively. Excluding the impact of foreign currency fluctuations and gasoline prices, Costco’s comps for the month under review rose 5.9%. The company recorded comps increase of 6.1%, 4.3% and 6.7% at the U.S., Canada and Other International locations.
For the 52-week period, Costco reported 4.1% jump in comps, displaying an increase of 4.3%, 4.6% and 2% at the U.S., Canada and Other International locations. Net sales for the period came in at $123.5 billion, an increase of 6.4% from the year-ago period.
Costco, operates 741 warehouses, comprising 514 warehouses in the United States and Puerto Rico, 97 in Canada, 37 in Mexico, 28 in UK, 26 in Japan, 13 in Korea, 13 in Taiwan, nine in Australia, two in Spain, one in Iceland and one in France.
Apart from Costco, L Brands, Inc. and The Buckle, Inc. (BKE - Free Report) came out with comparable sales results for the month of August. Comps for L Brands and Buckle declined 4% and 7.9%, respectively.
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It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
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Costco Wholesale Corporation (COST - Free Report) continued with solid comparable-store sales (comps) trend amid a tough retail landscape. Major chains are grappling with sluggish store and mall traffic as consumers switch to online shopping. But Costco seems somewhat resilient to the challenging retail backdrop. We believe that the hike in annual membership fees and increased penetration of Citi Visa co-brand card program will benefit the stock in the near term.
Despite Costco’s sound fundamentals, we note that shares of this Zacks Rank #3 (Hold) stock have dropped 13.1% in the past three months compared with the industry’s decline of roughly 6.7%. So, what suddenly went wrong with the stock? You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Notably, shares of Costco were hit hard, after the news of Whole Foods Market buyout by Amazon.com Inc. (AMZN - Free Report) surfaced.
Costco Continue to Post Solid Comps
Comps for four-week ended Aug 27, 2017 increased 7.3%, following an increase of 6.2% in July, 6% in June, 4.1% in May, 3% in April, 6% in March, 4% in February and 7% in January. The company generated net sales of $9.8 billion in August, up 10% year over year. Notably, net sales increased 8.8%, 7%, 7%, 5%, 9%, 8% and 9% in July, June, May, April, March, February and January, respectively. Comparable e-Commerce sales for the month of August surged 26%.
Comps for July reflect an increase of 7.4%, 8.2% and 6% at the U.S., Canada and Other International locations, respectively. Excluding the impact of foreign currency fluctuations and gasoline prices, Costco’s comps for the month under review rose 5.9%. The company recorded comps increase of 6.1%, 4.3% and 6.7% at the U.S., Canada and Other International locations.
For the 52-week period, Costco reported 4.1% jump in comps, displaying an increase of 4.3%, 4.6% and 2% at the U.S., Canada and Other International locations. Net sales for the period came in at $123.5 billion, an increase of 6.4% from the year-ago period.
Costco, operates 741 warehouses, comprising 514 warehouses in the United States and Puerto Rico, 97 in Canada, 37 in Mexico, 28 in UK, 26 in Japan, 13 in Korea, 13 in Taiwan, nine in Australia, two in Spain, one in Iceland and one in France.
Apart from Costco, L Brands, Inc. and The Buckle, Inc. (BKE - Free Report) came out with comparable sales results for the month of August. Comps for L Brands and Buckle declined 4% and 7.9%, respectively.
Zacks' 10-Minute Stock-Picking Secret
Since 1988, the Zacks system has more than doubled the S&P 500 with an average gain of +25% per year. With compounding, rebalancing, and exclusive of fees, it can turn thousands into millions of dollars.
But here's something even more remarkable: You can master this proven system without going to a single class or seminar. And then you can apply it to your portfolio in as little as 10 minutes a month.
Learn the secret >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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